The UK government recently announced a new scheme for venture capital-backed, early-stage businesses which are facing financing difficulties due to the ongoing COVID-19 pandemic.
The £500 million Future Fund will be delivered in partnership with the British Business Bank and provide UK-based companies with between £125,000 and £5 million from the government, with private investors at least matching the government commitment.
In Hawksford’s role as a Jersey administrator for various UK-backed venture capital funds (see case study), we see this as a step in the right direction for our clients, and the innovative businesses in their portfolios that will be key to the UK’s future economy post COVID-19.
Commenting on the new measures announced, Simon Page, Hawksford Global Head of Fund Services commented
“The importance of the UK Venture Capital sector for the long term strategy of the UK cannot be understated, especially whilst the UK works to maintain its leading position as a global hub for technology and certainly as the best place in Europe to launch and grow a start-up. This crucial support for the Venture Capital sector demonstrates the UK’s government’s understanding of the current cashflow constraints and the impact on the underlying portfolio companies, especially in light of the challenges faced in accessing capital through previous government initiatives such as the Coronavirus Business Interruption Loan Scheme (CBILS).
Given the economic uncertainty just now, this scheme will be a much-welcomed initiative by many businesses facing challenging headwinds.”
Jersey is an excellent and cost-effective choice for UK venture capital promoters and investors given its flexibility and variety of fund vehicles, expertise in alternatives, and speed and simplicity of set-up.
To learn more about Jersey’s credentials and Hawksford’s expertise in venture capital funds, please contact us.
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